President of the Dangote Group, Aliko Dangote, has attributed the higher cost of cement in Nigeria compared to foreign markets to heavy taxation and multiple regulatory charges imposed on local manufacturers.
Dangote explained that cement exported by his company is cheaper because exports are exempt from several taxes and levies that significantly increase production costs within Nigeria.
According to him, the cumulative effect of corporate income tax, value-added tax, education tax, health levies, and withholding tax adds substantially to the final retail price of cement sold domestically.
“When you look at my invoice, the cement I export is cheaper than the one I sell locally, because that’s how exports work,” Dangote said. “For exports, I am not paying 30 per cent company income tax, 2 per cent education tax, 1 per cent health levy, 7.5 per cent VAT, or 10 per cent withholding tax.
“When you remove all these taxes, I can afford to compete in the international market with countries like Turkey, Russia and China,” he added.
The billionaire industrialist reiterated his long-standing advocacy for local manufacturing as a pathway to economic self-sufficiency, stressing that reducing the tax burden on manufacturers would enhance competitiveness, lower prices for consumers, and strengthen Nigeria’s industrial base.
